An affiliate of Nicholas Perkins, one of the chain’s largest franchisees, will acquire Fuddruckers for an estimated $18.5 million from multiconcept operator Luby’s. The deal includes master ownership of the Fuddruckers brand worldwide.
The sale of the Fuddruckers franchise operations represents another step in the execution of the previously announced plan of Luby's to sell its assets, pay its liabilities, and return the remaining cash to shareholders under a formal plan of liquidation and dissolution approved by its shareholders in the fall of 2020. Most of the sale’s anticipated value of $18.5 million will be derived from the purchaser's issuance of a note to Luby’s and assumption of certain liabilities, per a release announcing the deal. This amount is in addition to the value Luby’s will realize from the sale of company-owned real estate at a number of Fuddruckers company-owned stores.
Fuddruckers has 92 locations systemwide, 13 of which are owned and operated by Nicholas Perkins. Luby's reports being in advanced discussions to complete a sale/franchise of an additional Fuddruckers company-owned store to Black Titan, who will continue to run that store as a franchisee. Following all these transactions, Luby's will have only five remaining stand-alone company owned Fuddruckers stores operating as well as four combo Fuddruckers operating with Luby's Cafeterias.
Luby’s acquired Fuddruckers in the summer of 2010.